About Capital Southwest (NASDAQ:CSWC)

Capital Southwest Corporation is a business development company specializing in credit and private equity and venture capital investments in middle market companies, mezzanine, later stage, mature, late venture, emerging growth, buyouts, recapitalizations and growth capital investments. It does not invest in startups, publicly traded companies, real estate developments, project finance opportunities, oil and gas exploration businesses, troubled companies, turnarounds, and companies in which significant senior management is departing. In lower middle market, the firm typically invests in growth financing, bolt-on acquisitions, new platform acquisitions, refinancing, dividend recapitalizations, sponsor-led buyouts, and management buyouts situations. The investment structures are Unitranche debt, subordinated debt, senior debt, first and second lien debt, and preferred and common equity. The firm makes equity co-investments alongside debt investments, up to 20% of total check and only makes non-control investments. It prefers to invest in Industrial manufacturing and services, value-added distribution, healthcare products and services, business services, specialty chemicals, food and beverage, tech-enabled services and SaaS models. The firm seeks to invest in energy services and products, industrial technologies, and specialty chemicals and products. Within energy services and products, the firm seeks to invest in each segment of the industry, including upstream, midstream and downstream, excluding exploration and production with a focus on differentiated products and services, equipment and tool rental, consumable products, and drilling and completion chemicals. Within industrial technologies, it seeks to invest in automation and process controls, handling and packaging equipment, industrial filtration and fluid handling, measurement, monitoring and testing, professional tools, and sensors and instrumentation. Within and specialty chemicals and products, the firm seeks to invest in businesses that develop and manufacture highly differentiated chemicals and products including adhesives, coatings and sealants, catalysts and absorbents, cosmeceuticals, fine chemicals, flavors and fragrances, performance lubricants, polymers, plastics and composites, chemical dispensing and filtration equipment, professional and industrial trade consumables and tools, engineered solutions for HVAC, plumbing, and electrical installations, specified high performance materials for fire protection and oilfield applications. It may also invest in exceptional opportunities in building products. The firm seeks to invest in the United States. The firm seeks to make equity investments up to $5 million and debt investments between $5 million and $20 million and co-invest in transaction size upto $40 million. It prefers to invest in companies with revenues approaching above $10 million, profitable operations, historical growth rate of at least 15 percent per year, EBITDA between $3 million and $50 million. In addition to making direct investments, the firm allocates capital to syndicated first and second lien term loans in the upper middle market. Criteria for Upper Middle Market Syndicated 1st Lien is EBITDA Size more than $30 million, Closing Leverage greater than 4 times, investment hold size between $5 million and $7 million, investment yield greater than 6.5%. Criteria for Upper Middle Market Syndicated 2nd Lien is EBITDA Size more than $50 million, Closing Leverage greater than 6 times, investment hold size between $5 million and $7 million, investment yield greater than 9%. It prefers to take a majority and minority stake. The firm has the flexibility to hold investments for very long period in its portfolio companies. It may also invest through warrants. The firm prefers to take Board participation in its portfolio companies. Capital Southwest Corporation was founded on April 19, 1961 and is based in Dallas, Texas.

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Miscellaneous

Capital Southwest (NASDAQ:CSWC) Frequently Asked Questions

What is Capital Southwest's stock symbol?

Capital Southwest trades on the NASDAQ under the ticker symbol "CSWC."

How often does Capital Southwest pay dividends? What is the dividend yield for Capital Southwest?

Capital Southwest declared a quarterly dividend on Thursday, March 1st. Shareholders of record on Thursday, March 15th will be given a dividend of $0.28 per share on Monday, April 2nd. This represents a $1.12 annualized dividend and a yield of 6.71%. The ex-dividend date is Wednesday, March 14th. This is an increase from Capital Southwest's previous quarterly dividend of $0.26. View Capital Southwest's Dividend History.

When is Capital Southwest's next earnings date?

What price target have analysts set for CSWC?

5 brokers have issued 1 year price targets for Capital Southwest's shares. Their predictions range from $18.00 to $22.00. On average, they expect Capital Southwest's share price to reach $20.00 in the next year. View Analyst Ratings for Capital Southwest.

What are Wall Street analysts saying about Capital Southwest stock?

Here are some recent quotes from research analysts about Capital Southwest stock:

1. National Securities analysts commented, "• CSWC posted core (pre-tax) NII/share of $0.27 compared with our estimate of $0.30. the reason for the miss was entirely attributable to the tax benefit the company received (equivalent to $0.03/share). NII/share was $0.29/share, matching our estimate and exceeding the quarterly dividend of $0.26/share.
• Asset quality continues to be strong with no non-accrual assets and a single watch list investment, Wastewater Specialties, which was marked down after some flooding during the hurricane in Texas in September. However, management seems upbeat about the company’s prospects and we believe this being watch listed is a conservative move by the company.
• NAV/share increased to $18.44 from $18.26 Q/Q driving annualized economic return of 9.7% on the quarter, largely due to $5.1 million of unrealized gains on the equity book. • D/E finished the quarter at only 0.31x with the company having a target of 0.70x-0.80x, leading us to expect strong portfolio growth through fiscal 2019 without the need to issue equity. We continue to model stair step increases in NII and dividends as the company works towards its balance sheet leverage target. • We are revising our fiscal 2018 core NII/share estimate to $1.04 from $1.10 and our fiscal 2019 core NII/share estimate to $1.41 from $1.51." (2/7/2018)

2. According to Zacks Investment Research, "Capital Southwest Corporation is a venture capital investment company whose objective is to achieve capital appreciation through long-term investments in businesses believed to have favorable growth potential. The Company's investments are focused on early-stage financings, expansion financings, management buyouts and recapitalizations in a broad range of industry segments. The portfolio is a composite of companies in which the Company has major interests as well as a number of developing companies and marketable securities of established publicly-owned companies. " (10/11/2017)

Has Capital Southwest been receiving favorable news coverage?

Media coverage about CSWC stock has been trending somewhat positive this week, Accern Sentiment Analysis reports. Accern identifies negative and positive media coverage by reviewing more than twenty million news and blog sources. Accern ranks coverage of companies on a scale of -1 to 1, with scores nearest to one being the most favorable. Capital Southwest earned a media sentiment score of 0.04 on Accern's scale. They also gave press coverage about the asset manager an impact score of 45.89 out of 100, meaning that recent media coverage is somewhat unlikely to have an effect on the stock's share price in the next several days.

Which major investors are selling Capital Southwest stock?

CSWC stock was sold by a variety of institutional investors in the last quarter, including UBS Group AG, Wells Fargo & Company MN and Punch & Associates Investment Management Inc.. Company insiders that have sold Capital Southwest company stock in the last year include Joseph B Armes and Moab Capital Partners Llc. View Insider Buying and Selling for Capital Southwest.

Which major investors are buying Capital Southwest stock?

CSWC stock was acquired by a variety of institutional investors in the last quarter, including Hilltop Holdings Inc., Northern Trust Corp, Greenwich Investment Management Inc. and Centaurus Financial Inc.. Company insiders that have bought Capital Southwest stock in the last two years include David R Brooks, Douglas M Kelley, Jack D Furst, John H Wilson, Michael Scott Sarner and Thomas Duane Morgan. View Insider Buying and Selling for Capital Southwest.

How do I buy shares of Capital Southwest?

Shares of CSWC can be purchased through any online brokerage account. Popular online brokerages with access to the U.S. stock market include Vanguard Brokerage Services, TD Ameritrade, E*TRADE, Scottrade, Fidelity and Charles Schwab.

What is Capital Southwest's stock price today?

One share of CSWC stock can currently be purchased for approximately $16.68.

How big of a company is Capital Southwest?

Capital Southwest has a market capitalization of $278.42 million and generates $23.50 million in revenue each year. The asset manager earns $23.47 million in net income (profit) each year or $0.61 on an earnings per share basis. Capital Southwest employs 17 workers across the globe.

MarketBeat Community Rating for Capital Southwest (CSWC)

MarketBeat's community ratings are surveys of what our community members think about Capital Southwest and other stocks. Vote "Outperform" if you believe CSWC will outperform the S&P 500 over the long term. Vote "Underperform" if you believe CSWC will underperform the S&P 500 over the long term. You may vote once every thirty days.

Analyst Ratings

Capital Southwest (NASDAQ:CSWC) Price Target and Consensus Rating

MarketBeat calculates consensus analyst ratings for stocks using the most recent rating from each Wall Street analyst that has rated a stock within the last twelve months. Each analyst's rating is normalized to a standardized rating score of 1 (sell), 2 (hold), 3 (buy) or 4 (strong buy). Analyst consensus ratings scores are calculated using the mean average of the number of normalized sell, hold, buy and strong buy ratings from Wall Street analysts. Each stock's consensus analyst rating is derived from its calculated consensus ratings score (0-1.5 = Sell, 1.5-2.5 = Hold, 2.5-3.5 = Buy, >3.5 = Strong Buy). MarketBeat's consensus price targets are a mean average of the most recent available price targets set by each analyst that has set a price target for the stock in the last twelve months. MarketBeat's consensus ratings and consensus price targets may differ from those calculated by other firms due to differences in methodology and available data.

5 Wall Street analysts have issued ratings and price targets for Capital Southwest in the last 12 months. Their average twelve-month price target is $20.00, suggesting that the stock has a possible upside of 19.90%. The high price target for CSWC is $22.00 and the low price target for CSWC is $18.00. There are currently 1 hold rating and 4 buy ratings for the stock, resulting in a consensus rating of "Buy."

Dividends

Capital Southwest (NASDAQ:CSWC) Dividend Information

Capital Southwest pays an annual dividend of $1.12 per share, with a dividend yield of 6.71%. CSWC's most recent quarterly dividend payment was Monday, April 2. Capital Southwest pays out 183.61% of its earnings out as a dividend.